The Bangladesh Bank has significantly bolstered its foreign currency reserves through a substantial acquisition of $223.50 million from 14 commercial banks. This latest intervention, occurring on Tuesday, 6 January 2026, marks a continuation of the regulator’s strategic mopping up of excess liquidity to ensure macroeconomic stability in the new year.
The Mechanism of Market Intervention
The central bank executed the purchase at a designated exchange rate of 122.30 BDT per US Dollar, which also served as the official “cut-off” rate for the session. By absorbing these funds, the central bank is effectively managing the supply of the Greenback within the domestic interbank market, a move designed to prevent erratic spikes in currency valuation and to provide a predictable environment for international trade.
According to Arif Hossain Khan, the Executive Director and Spokesperson for the Bangladesh Bank, the participation of 14 separate commercial banks highlights a robust availability of foreign currency within the private banking sector, largely fueled by rising export receipts and steady remittance inflows.
A Half-Year Milestone
The scale of the central bank’s activity during the current 2025-26 fiscal year has been remarkable. Within the first six days of January 2026 alone, the bank has already purchased $411 million. This aggressive accumulation strategy has brought the total year-to-date (YTD) procurement to an impressive $3.546 billion.
Table: Summary of Foreign Exchange Acquisitions
| Period | Amount Purchased (USD) | Cumulative Total (USD) | Effective Rate (BDT) |
| July – December 2025 | $3.135 Billion | $3.135 Billion | Market Weighted |
| January 1–6, 2026 | $411.00 Million | $3.546 Billion | 122.30 |
| Current Total (FYTD) | $3.546 Billion | $3.55 Billion | Stabilised |
Strategic Economic Implications
Financial analysts suggest that this “buying spree” serves two primary purposes. Firstly, it strengthens the national foreign exchange reserve, providing a vital cushion for external debt servicing and high-value sovereign imports such as fuel and fertilisers. Secondly, by maintaining the rate at 122.30 BDT, the bank is attempting to find a sustainable equilibrium that balances the needs of exporters with the costs faced by importers.
This influx of dollars into the central bank’s coffers is seen as a positive indicator of the country’s recovering balance of payments. However, the regulator must remain vigilant; over-purchasing could potentially lead to a shortage of dollars for private importers, which might trigger inflationary pressures.
As we move further into 2026, the focus will shift to how these bolstered reserves are utilised to support the national credit rating and attract foreign direct investment.